Superannuation is a vital corner stone of your long-term financial planning.
Despite changes that may occur to the superannuation system, it clearly remains the most tax-effective means of creating wealth for retirement – a fact that is definitely not going to change.
Superannuation offers significant tax concessions on contributions and investment income, both while you are building up your funds and also in retirement.
With the reduction in tax-deductible contribution limits, after-tax contributions now play an increasingly important part of your planning, especially as you approach retirement or if, in fact, you have already reached that milestone.
Certainly the intricacies of superannuation can cause confusion, but with the assistance of expert knowledge, this complexity also brings unique opportunities. The advantages that superannuation can give you in reducing tax, and therefore allowing you to accumulate more wealth, are simply unrivalled.
However, this needs to be considered against the relative inaccessibility of superannuation until later in life.
It’s important to recognise that superannuation is not just a means of managing investments. So to assess whether superannuation is the correct vehicle for your retirement we examine the following considerations:
- Asset protection
- Estate planning
Our preferred approach is a self-managed fund because it provides more options and control than any other type of superannuation in terms of:
- Investment opportunities
- Tax planning strategies
- Estate planning strategies
A self-managed fund can do anything allowed under the legislation.
On the other hand, with commercial and industry funds your options are dramatically limited. It’s rather like investing in a black box where a return comes out, but you don’t really know what assets you own.
Intralink has been specifically structured to provide you with all of the strategic and investment advice, administration, compliance and tax returns you need for the fund.
However, self-managed superannuation has fixed accounting costs. While this is beneficial to larger funds, we would not recommend a self-managed fund where a family’s combined superannuation is of insufficient size. In this instance we would provide alternative options and ongoing advice and management until the required funds can be accumulated to justify a self-managed fund.